Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home

2019 (8) TMI 739

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Therefore, in view of the concurrent findings of fact recorded by the AO, the CIT(A) and the Tribunal that the assessee was unable to satisfactorily explain the source of investment in the said property at any stage, no error could be pointed out in the impugned orders which may warrant interference by this Court. The law is well settled that the onus of proving the source of a sum of money found to have been received by the assessee is on him and if he disputes the liability for tax, it is for him to show that the receipt is not income or it is exempted from tax. In the absence of such proof, the revenue is entitled to treat it as taxable income. - decided against assessee - Income Tax Appeal No.-14 of 2019, 10 of 2019, 11 of 2019, 12 of 2019, 13 of 2019, 15 of 2019 And 16 of 2019 - Dated:- 13-8-2019 - Bharati Sapru And Vivek Varma JJ. For the Appellant : Krishna Dev Vyas,Anurag Vajpeyi,Sandeep Singh For the Respondent : S.S.C.,Gaurav Mahajan ORDER (DELIVERED BY VIVEK VARMA, J.) 1. The batch of appeals under Section 260-A of the Income Tax, Act, 1961 (hereinafter referred to as ''the Act ) arises out of order of the Income Tax Appellate Tribunal, New Delhi dated 12.07.2017 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sed in the status of an individual and derives income from job work. An AIR information was received from the higher authorities that appellant along with seven other persons (who are also appellants here in connected appeals referred above) purchased a property -Kast Khata No. 106, Khet No. 152 measuring 1.385 hectares in Village Imliya, Pargana Baran, District Bulandshahr for a consideration of ₹ 23,78,500/- (including the cost of conveyance etc). 5. On perusal of the sale deed, the Assessing officer noticed that the property purchased was residential and the share of each person comes to ₹ 2,97,312/-. 6. The proceedings under Section 147 of the Act were initiated by issuance of notice under Section 148 of the Act dated 20.10.2009. In pursuance of this notice, the assessee filed his return of income on 17.11.2009 declaring income of ₹ 40,000/- from job work. 7. The A.O. issued notice under Section 143 (2) and 142 (1) of the Act dated 18.11.2009 to the assessee along with a questionnaire, on the date fixed assessee sought adjournment. Another notice was issued but neither adjournment was sought nor any reply was filed. Thereafter, the A.O. issued notice under Sec .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... offered by the assessee is not acceptable, the amounts credited cannot be treated as an income in the hands of the assessee and that the assessee cannot be compelled to prove the source of the creditor. It is further submitted that the additions made as unexplained investment as income from other sources in the hands of the assessee by the assessing officer is without application of mind and having no distant connection with the material on record. 13. The learned counsel for the Department refuted the above contentions and contended that the concurrent findings of fact about the lack of proof of genuineness of the transaction and creditworthiness of the creditor of the assessee by the assessing officer, by the CIT (Appeals) and then by the Tribunal, are based on appreciation of evidence and cannot be said to be perverse warranting interference under Section 260-A of the Act. The learned counsel for the department relied upon the Judgement of this Court in the case of Smt Suman Gupta Vs CIT, in Incometax appeal No. 680/2012 dated 07.08.2012. 14. We have considered the rival submissions of learned counsel for the parties and have gone through the record. 15. Record would disclose t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ndings recorded by the Tribunal, we find that the learned Tribunal had also noted in its order that the CIT (A) on perusal of the copy of the bank account of Smt Rihana returned a finding that the person extending loan had deposited cash in her bank account. A sum of Rs; 1.5 Lacs, ₹ 2 Lacs and ₹ 1.5 Lacs had been deposited in the Bank account in cash during the financial year 2004-05 prior to giving loan to the appellant. The appellant neither before the assessment proceedings nor during the appellate proceedings had been able to substantiate the genuineness of the loan or the creditworthiness of the alleged creditor. 18. In the instant case, the source of amount said to have been received by the assessee had not been explained nor the assessee had furnished any evidence in support of his claim. When it was questioned by the AO to produce Smt Rehana from whom ₹ 2 Lacs is said to have been taken as loan and also the details of the family members and house hold expenses on the prescribed format, the assessee could not furnish any concrete evidence in this regard. For substantiating the transaction, it is imperative on the part of the assessee that details regarding .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... le explanation as regards the sums found credited in the books maintained by the assessees. It is true the opinion of the Assessing Officer for not accepting the explanation offered by the assessees as not satisfactory is required to be based on proper appreciation of material and other attending circumstances available on record. The opinion of the Assessing Officer is required to be formed objectively with reference to the material available on record. Application of mind is the sine qua non for forming the opinion. 21. Recently, the principle of law laid down in the above two judgments of the Apex Court have been reiterated and followed in the case of Principle CIT vs. NRA Iron and Steel Pvt. Ltd. Reported in (2019) 412 ITR 161 (SC) and held as follows: On the facts of the present case, clearly the Assessee Company-Respondent failed to discharge the onus required under Section 68 of the Act, the Assessing Officer was justified in adding back the amounts to the Assessee's income. 22. In the case in hand, though the stated transaction of alleged loan is through bank but the assessee was not able to explain or substantiate the source; creditworthiness of the creditor and the ge .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he instant case the High Court has correctly concluded that no substantial question of law arises from the order of the Tribunal. All the authorities below, in particular the Tribunal, have observed in unison that the assessee did not produce any evidence to rebut the presumption drawn against him under Section 68 of the Act, by producing the parties in whose name the amounts in question had been credited by the assessee in his books of account. In the absence of any cogent evidence, a bald explanation furnished by the assessee about the source of the credits in question viz. realisation from the debtors of the erstwhile firm, in the opinion of the assessing officer, was not satisfactory. It is well settled that in view of Section 68 of the Act, where any sum is found credited in the books of the assessee for any previous year, the same may be charged to income tax as the income of the assessee of that previous year, if the explanation offered by the assessee about the nature and source thereof is, in the opinion of the assessing officer, not satisfactory. (See Sumati Dayal Vs CIT (1995 Supp (2) SCC 453), SCC p. 456, para 4 and CIT Vs P. Mohanakala (2007) 6 S.C.C. 21)." 26. In .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map ||